Source:
COMTEX
Date entered into CIS:
92/06/11 03:57:04
Title:
FBI Raids Computer Bulletin Board; Tipped Off By Software Publishers
Article:
By Josh Hyatt, The Boston Globe Knight-Ridder/Tribune Business News
BOSTON--June 11--In one of the first crackdowns of its kind, six FBI agents
Wednesday raided a computer bulletin board based in a Millbury, Mass., home.
Authorities said the bulletin board's operator had been illegally distributing
copyrighted software.
Executing a criminal search warrant, the agents seized several computers, six
* modems and a program called PC Board, which was used to run the bulletin
board. Authorities also seized documents that listed users of the service.
No arrests were made, according to the Software Publishers Association, a
trade group that brought the case to the FBI's attention.
The FBI would not comment on the case except to confirm that a raid had taken
place and that the investigation is ongoing. The alleged operator of the
bulletin board, Richard Kenadek, could not be reached for comment.
Around the same time as the raid, the software association filed a civil
lawsuit against Kenadek, charging him with violating copyright laws. Ilene
Rosenthal, the group's director of litigation, said that "the man had
incriminated himself" through various computerized messages. "There's plenty
of evidence to show that he was very aware of everything on his bulletin board
" she claimed.
* Bulletin boards enable personal computer users to access a host computer via
their modems. Typically, participants exchange information regarding
everything from computer programs to tropical fish. They may also, for example
obtain upgrades of computer programs.
The association said that its own four-month investigation revealed that this
bulletin board, called "Davy Jones Locker," contained copies of more than 200
copyrighted programs. Rosenthal said that users were also encouraged to
contribute copyrighted software programs for others to download, or copy.
Those who did so, she said, were given extra time on the bulletin board beyond
their daily four-hour limit.
According to Rosenthal, subscribers paid a fee, $49 for three months or $99
for one year, for access to such popular programs as Lotus 1-2-3, Microsoft
Word and Leisure Suit Larry. She said that "Davy Jones Locker" had nearly 400
paying subscribers in 36 states and 11 foreign countries. The association
estimates that as of March, the bulletin board had distributed $675,000 of
copyrighted software.
Industry observers said it was the first time that federal authorities had
cracked down on a bulletin board service for violating copyright laws. In the
past others have been closed down for credit-card fraud, for example. "We're
making legal history here," said Sanford Sherizen, president of a Natick,
Mass., computer security firm.
But Sherizen warned that "there are some very sticky issues" involving the
rights of bulletin board operators. In the past, he said, operators have
claimed that they were simply providing a service and -- like newspaper
publishers and telephone companies -- not responsible for all communication
that takes place over their bulletin boards. Advocacy groups have also claimed
that the civil rights of bulletin board operators have been infringed upon.
"So far, the public relations has worked much more effectively than the legal
cases," Sherizen added, referring to the association.
The FBI and the Secret Service -- which also has jurisdiction for most federal
computer crimes -- have also been accused of mishandling similar raids.
"Agents are groping in the dark because they don't know what they are looking
at," said Robert Gorrill, director of the Boston Computer Society's
telecommunications group.
To track down such bulletin boards, the software association operates an
antipiracy hotline, which receives at least 10 calls a day, according to
Rosenthal. She said that the association, which represents some 900 software
publishers, takes action against at least two bulletin boards a week. Often
these involve a lawsuit or a voluntary audit letter, giving the bulletin board
operator a chance to cooperate in an investigation.
"There haven't been a lot of criminal raids on bulletin boards," Rosenthal
said. "But we're glad to see the FBI giving the issue credence."
Software pirates, she said, annually steal as much as $12 billion in
copyrighted software. END